Acct 309

717 Words Sep 18th, 2013 3 Pages
ACCT 309

COSO Integrated Framework: Internal Environment Part 2

Assignment 1. Download or open the COSO ERM Integrated Framework from Course Handouts in Blackboard. 2. Review chapter 2 “Internal Environment” pages 27-34. 3. Read the following information about Go-Go Corporation. 4. Determine how each of the issues relates to the eight factors of the internal environment. * Factors of internal environment include risk management philosophy, risk appetite, board of directors, etc.
Some issues relate to only one factor, some relate to more than one factor. If you believe more than one factor of internal environment applies to a specific issue, then also identify which factor is the most relevant choice.
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The policies and procedures appear adequate and typical.
This issue reflects a problem with Integrity and Ethical Values factor of the internal environment. Policy is important to and the foundation of an effective ethics program. Policy addresses a variety of behavioral issues, such as integrity and ethics, conflicts of interest, illegal or otherwise improper payments, and anticompetitive arrangements. So there is no problem on this factor. i. The new information systems project for an enhanced network firewall appeared to be on a very aggressive implementation schedule. When interviewed, the IT manager said that even if he put all the IT employees on the project full-time for the next two years, the project still couldn’t be completed on time. The IT manager indicated he had spoken to upper management about the issue, but upper management did not take any action.
This issue reflects a problem with Assignment of Authority and Responsibility factor of the internal environment. COSO suggest faster response times can enhance competitiveness and customer satisfaction. This upper management did not take any action means he did not comply with his duty. j. One of Go-Go’s primary strategies is to achieve consistent growth. The capital budgeting policy indicates a required payback period of 24 months or less and an internal rate of return that exceeds cost of capital by 6% for all new investments.
This issue reflects

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